Brent crude futures hovered around $73.1 per barrel on Tuesday, following a nearly 3% decline in the previous session.
Easing tensions bring Brent prices down
This drop came after reports that Lebanon and Israel had agreed on terms to end the Israel-Hezbollah conflict, easing concerns about potential supply disruptions in the Middle East. The Israeli ambassador to the US indicated that a deal could be reached "within days," though it remains uncertain whether the Iran-backed group will agree to a truce. Oil prices also faced pressure from a stronger US dollar as President-elect Donald Trump threatened tariffs on Canada, Mexico, and China.
Russia and Iran may fuel prices
However, escalating tensions between Russia and Ukraine, as well as Iran's plans to expand its nuclear fuel production, offered some support to oil prices, limiting further declines. Traders are now awaiting the OPEC meeting on December 1st for further market direction.
